Compliance Program Management: The Gate and Rate Approach

A different technique to assess and plan your compliance program

The ‘Gate and Rate’ approach has its roots in procurement where it is used as a tenderer assessment model. It is visually presented using a ‘hockey stick’ curve (example below).

Tenders are first assessed against the gate criteria, to see which, if any, meet the minimum or core requirements; these requirements could include, for example, minimum production capacity, acceptable pricing, satisfactory company standing and geographic location.

gate and rateOnly those tenders that successfully satisfy the minimum or core requirements ‘get over the gate’ – the horizontal element of the hockey stick curve.

Those that do then proceed to the rate assessment – where available production capacity, pricing and other offers in the tender, for example, could be used as some of the criteria to identify the preferred tender; this is visually presented on the vertical element of the curve.

‘Gate and Rate’ Compliance Program Management
The same approach can be used very effectively to assess and plan an organization’s compliance program management – particularly when that organization is just starting or refreshing their compliance implementation. It is also a very valuable technique for organizations that aspire to achieve excellent or world-class compliance capability and want to consider how that could be achieved.

Clearly, to get over the gate, an organization would have to initially put in place a number of core compliance capabilities. These could, for example, comprise a year one implementation of the compliance ‘Big 5’ – often, but not always:

  1. AB&C
  2. Competition/Anti-Trust
  3. Hotline
  4. Conflicts of Interest
  5. Code of Conduct

Thereafter, the rate criteria can be used to assess the activities that would be required to take the organization’s compliance capability towards excellence/world-class status.

These would typically include, but are not limited to, data protection/information retention, policy management, industry-specifics such as:

  • KYC
  • AML
  • Enhanced Learning/LMS
  • Communications
  • Compliance Surveys
  • Anti-Retaliation
  • Culture Change
  • Third-Party Compliance
  • Supplier Code of Conduct
  • Mystery Shopping
  • Insights (with appropriate HR, audit and related links)

Compliance “gate and rate” is a very useful technique that enables requirements, plans and aspirations to be mapped, together with the basics of timescales, prioritization and integration – supported by an effective visual presentation.